Which way of paying protects you most

Four ways of paying, wildly different protection, and almost nobody chooses on that basis. Here they are, strongest first.

1. Credit card, over £100

Section 75 of the Consumer Credit Act makes the card company jointly liable with the seller. If the goods never arrive, are not as described, or the company goes bust, you can claim from your card provider directly.

It applies when the item costs over £100 and not more than £30,000. You only need to have paid part of it on the card — a £100 deposit on a £4,000 kitchen brings the whole purchase in, which is the single most useful fact on this page.

This is a legal right, not a goodwill scheme, and it survives the seller disappearing entirely.

2. Credit or debit card, any amount

Chargeback is a card scheme rule rather than a law, but it works and it covers debit cards too. Your bank reverses the payment through the card network.

Useful for anything under £100, and for debit card purchases of any size. Time limits apply — usually 120 days from the transaction or from when you expected delivery, so do not sit on it.

3. PayPal Goods and Services

Real buyer protection for items that do not arrive or are significantly not as described.

Friends and Family has none. That is exactly why a scam seller asks for it, and the request itself should end the transaction.

4. Bank transfer

The weakest, and the one scammers steer you towards. There is no built-in protection at all.

The UK reimbursement rules do now cover many transfer scams, which is a real improvement, but it is a claims process with limits and an assessment rather than a right to your money back. Details in getting your money back.

If someone offers you a discount to pay by transfer, the discount is the price of your protection.

What about buy now, pay later?

Klarna, Clearpay and similar are generally not covered by Section 75 of the Consumer Credit Act, because they are not regulated credit in the same way. Their own protection policies vary and are not a legal right. Worth knowing before using one for something expensive.

The practical rules

• Anything over £100 that matters: credit card. Holidays, furniture, building work, electronics.

Then pay the card off in full.

• A deposit on a large purchase: credit card, even if the balance goes another way.
• A marketplace stranger: cash on collection, or PayPal Goods and Services.
• A bank transfer only to someone you would recognise in the street.

How to actually claim

Section 75 of the Consumer Credit Act: write to the card provider, not the retailer. Say "Section 75 of the Consumer Credit Act claim" explicitly. They have to consider it.

Chargeback: ring your bank and ask for a chargeback, giving the transaction date and why.

If refused: complain formally, then take it to the Financial Ombudsman Service. Free, no solicitor needed, and it overturns decisions regularly. Never pay a company to do this for you.